Magazine publisher ShortList Media has reported a loss of almost £1m in its most recent annual accounts after being hit by the “tough” launch of Stylist in France and investing in fashion site Never Underdressed.

The publisher, which has investors including Beano and Friends Reunited owner DC Thomson, made a loss of £994,355 in the year to 31 August 2013.

The strong performance of flagship titles ShortList and Stylist UK fuelled a 21% jump in revenues to £21.6m and digital income grew by 111%, according to the latest financial figures filed at Companies House on Friday.

The unnamed highest-paid director of the company, which is run by Mike Soutar, received £298,000. This is up from £275,000 in 2012.

The pay bump was awarded despite ShortList Media posting a loss last year. In 2012 profits were almost £1m.

The company invested more than £2m into launching new products, and struggled with a poor advertising market in France.

Last year Shortlist Media launched male-focused daily email Mr Hyde, a French edition of Stylist in partnership with the publisher of Marie Claire, and digital fashion site Never Underdressed.

The launches increased staff numbers from 93 to 117, with those classified as “digital” jumping from 18 to 40.

As a result the staff wage bill rose 36% from £4.78m to £6.5m.

The publisher admitted that the launch of the French edition of Stylist had been “tough” due to the weak ad market.

“Launching in France has taught us a great deal,” the company said. “Trading has been tough as we launched into a very difficult situation, echoing the challenges that we faced when first launching Shortlist Media back in the crisis of 2007-8.”

The company said there remains “considerable further opportunities globally to licence or partner our brands with powerful media companies”.

“These launches continue our strategy of using the cash flow and profitability from the core business to drive continuing, sustainable growth through organic growth and launch,” the company added.

ShortList Media had net debt of £1.3m at 31 August.

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